The growth in international tourism is providing many LEDCs with new opportunities of economic development, but few derive full benefits from their primary resources for tourism. Discuss this statement.

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Matthew Young

The growth in international tourism is providing many LEDCs with new opportunities of economic development, but few derive full benefits from their primary resources for tourism. Discuss this statement.

This statement is true; many LEDCs do not take full benefit from their primary resources as large transnational companies set up in the country and large leakages occur. However, TNCs would not set up in the particular country if they did not feel that the area provided them with the sufficient resources to ensure a profit.

Primary resources are existing resources that encourage people to visit, and are not purposely provided for tourists such as lakes, historic buildings and climate. Secondary resources, on the other hand, are provided for tourists, to enhance their experience and to enable them to access the area.

International tourism has grown due to a number of factors, such as people being more adventurous, more disposable income, the cost of long haul flights are becoming cheaper with package holidays and there is an improved infrastructure in the destination.

However leakages are the main limitation of tourism in LEDCs. These can come from foreign developers and hotel owners taking profits, foreign works sent over by the companies and hotels sending money back to their own countries, payments for goods imported for tourism, to repay loans and travel costs taken out by foreign airlines. For example Antigua in the Caribbean loses 96 cents out of every dollar in order to pay for food from Miami and Florida, and even though the country has over half a million tourists each year, bringing in £200 million, much is lost to foreign developers and to cruise ships, who organise their own tours – these use the primary resources of the island but Antigua does not see much income as the cruise ship is there for a few hours and then goes, and as a result Antigua gains no accommodation fee.

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Goa on the west coast of India for example has used its primary resources of the temperate climate, the large beaches and palm trees to attract tourists from the more economically developed countries of Europe and North America. This has provided jobs and money to the area however as many of the hotels are foreign owned, a proportion of the income is lost from the area and therefore it does not benefit Goa. This then in turn reduces the multiplier effect, as potential income has to pay other countries, which have produced a garment, or own the hotel. The ...

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This is a good answer to a difficult question. It is well structured and the author shows an understanding of the key terms such as "primary resources", and includes some of the key ideas which would be expected, especially "leakage". Some reference is made to other important ideas such as the "multiplier effect" but this could be extended. "Sustainability" could also be explored further. More facts and figures would also improve it.